Correlation Between ProShares Ultra and Calamos Antetokounmpo

Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Calamos Antetokounmpo at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ProShares Ultra and Calamos Antetokounmpo into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ProShares Ultra Oil and Calamos Antetokounmpo Global, you can compare the effects of market volatilities on ProShares Ultra and Calamos Antetokounmpo and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ProShares Ultra with a short position of Calamos Antetokounmpo. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Calamos Antetokounmpo.

Diversification Opportunities for ProShares Ultra and Calamos Antetokounmpo

-0.34

Correlation Coefficient

ProShares Ultra  Calamos Antetokounmpo

Very good diversification

The 3 months correlation between ProShares and Calamos is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Oil and Calamos Antetokounmpo Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Antetokounmpo and ProShares Ultra is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ProShares Ultra Oil are associated (or correlated) with Calamos Antetokounmpo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Antetokounmpo has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Calamos Antetokounmpo go up and down completely randomly.

Pair Corralation between ProShares Ultra and Calamos Antetokounmpo

Considering the 90-day investment horizon ProShares Ultra Oil is expected to generate 3.97 times more return on investment than Calamos Antetokounmpo. However, ProShares Ultra is 3.97 times more volatile than Calamos Antetokounmpo Global. It trades about 0.05 of its potential returns per unit of risk. Calamos Antetokounmpo Global is currently generating about 0.01 per unit of risk. If you would invest  3,690  in ProShares Ultra Oil on September 15, 2024 and sell it today you would earn a total of  204.00  from holding ProShares Ultra Oil or generate 5.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

ProShares Ultra Oil  vs.  Calamos Antetokounmpo Global

ProShares Ultra Oil

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra Oil are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, ProShares Ultra may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Calamos Antetokounmpo

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Antetokounmpo Global are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Calamos Antetokounmpo is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with ProShares Ultra and Calamos Antetokounmpo

The main advantage of trading using opposite ProShares Ultra and Calamos Antetokounmpo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Calamos Antetokounmpo can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Calamos Antetokounmpo will offset losses from the drop in Calamos Antetokounmpo's long position.

The idea behind ProShares Ultra Oil and Calamos Antetokounmpo Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.